Inching towards the record high seen in January, the country’s foreign exchange reserves swelled by $563 million to $590.028 billion in the week ended May 14, according to data from the Reserve Bank of India (RBI). The reserves had touched a lifetime high of $590.185 billion in the week ended January 29, 2021.
Driven by sustained foreign direct investment (FDI) and foreign portfolio investor (FPI) inflow, the foreign exchange — or forex — reserves have been on the rise for over a month now, starting with a gain of $4.344 billion recorded during the week ended April 9.
In the previous week ended May 7, the reserves had risen by $1.444 billion to $589.465 billion.
During the reporting week ended May 14, the rise in the forex kitty was mainly on account of an increase in foreign currency assets (FCA), a major component of the overall reserves.
FCAs jumped by $377 billion to $546.87 billion in the reporting week, as per weekly released data by the RBI on Friday.